"Infrastructure investment will increase the investment worthiness of the private sector by lowering production and logistics costs, while public machinery and equipment investment may not necessarily increase private investment worthiness." Public investment must gear towards areas such as construction investment, he said, noting that Thailand not only suffers from the quantity aspect of lower public investment but also suffers from the quality aspect. Despite the robust pace of public investment, private investment has been subpar, while a change in government policies is needed to upgrade Thailand's competitiveness, say analysts. "Data so far is consistent with our long-standing view that exports and private investment will be disappointing this year, while public investment and tourism are bright spots." "We expect public investment growth rates to fall in the second half due to a more challenging base.

Source: Bangkok Post July 25, 2016 23:49 UTC